Israeli Finance Ministry Warns Torah Study Law Could Raise Taxes by 16%

The Israeli Finance Ministry's professional staff strongly oppose the proposed Basic Law on Torah Study, warning of severe economic and legal consequences for the national economy. They emphasize that prioritizing the right to Torah study over the principle of equality would disrupt budget priorities and shift extensive resources and benefits toward this sector. Due to the vague wording of the bill, the exact fiscal cost cannot yet be determined, but the ministry considers the risks to the economy significant.

The Finance Ministry also states that the law undermines government goals to integrate the ultra-Orthodox community into military service and the labor market. The position paper highlights that granting exemptions or restoring allowances to those avoiding service would perpetuate the heavy reserve duty burden and hinder workforce participation. According to professional estimates, these measures would severely damage economic growth and public welfare, potentially necessitating a 16% increase in direct taxes in the future.